Before the Sole Arbitrator/Arbitral Tribunal appointed as agreed to by the parties to
this proceeding to resolve by Arbitration the disputes between them under Loan Cum
Hypothecation Agreement
Present:
Thiru. R.Ramaraj, B.Sc.,B.L.,
District Judge (Retd.,)
No:28/3,Upstairs,District Consumer Commission,
Sengunthapuram, First Street, Mangalam Road,
Karuvampalayam, Tiruppur
I.A No. 2 /2023
Arbitration Proceedings Number: 531 / 2023
M/s. Shriram Finance Ltd.,(Formerly Known as Shriram Transport Finance )Erode
Represented by their authorized representative,
Mr.C.Gopinath,
…...Petitioner
… Vs …
1. Mayilsamy S
S/o V.Shanmugam
No.339/2,Vettukattu valasu,
Nasiyanoor Road,
Erode Collectorate,
Erode-638011.
2. Sethu Ramalingam S,
S/o Sadhasivam,
No.74,Arul Vasantham Veethi,
Arul Velavan Nagar,Veerappanchatram,
Erode-638107.
… Respondents
THE MATTER OF APPLICATION UNDER SECTION 17 OF THE
ARBITRATION AND CONCILIATION ACT, 1996
This Petition having come up for hearing before this tribunal in the presence of Mr.
J.KAVIN PRABHAKARAN B.A.,LLB., Counsel for the petitioner/claimant. Heard the
petitioner side counsel and perused the documents. As per act No.3 of 2019, (Amendment to
Arbitration and conciliation Act, 1996), The Arbitral Tribunal shall have power to grant all kinds
of interim measures which the court is empowered to grant under section 17 of the said Act. Any
order issued by the Arbitral tribunal for grant of interim measures shall be deemed to be an order
of the court for all purpose and shall be enforceable under code of civil procedure, 1908 in the
manner, as if it were an order of the court.
Interim Order of Attachment U/s 17 of the Arbitration and Conciliation Act 1996
The averments in the petition are briefly as follows:
1. The claimant is a reputed company in the business of financing, hire purchase, lease
and loan cum hypothecation in respect of commercial goods vehicles. The
respondents jointly and severally entered into a Loan cum hypothecation agreement
with the claimant on 25.01.2018 to purchase a vehicle, bearing registration No.
TN 86 A 9526.
2. The total agreement value of Rs.4042649/- being payable in 60 monthly
installments as per the schedule of the loan cum hypothecation agreement. The first
respondent executed the said agreement as borrower and the second respondent as
guarantor and the hence the respondents are liable to an equal extent to pay to the
claimant the amount due under the agreement.
3. In respect of the said agreement, the respondents were very irregular in payment of
installments and they have paid only a sum of Rs. 7639695/- towards monthly loan
installments(including sale amount of Vehicle) and thereafter failed and neglected
to pay the balance monthly installments. The respondents have committed default in
payment of the monthly installments and in spite of request and demand from the
petitioner/claimant they did not make the payment for the loan outstanding. The
Respondents are evading service of the notice and also the demands made by the
Petitioner Company. The respondents are attempting to defraud the Petitioner
Company in recovering their legitimate dues. On enquiry the Petitioner Company
came to know that the first respondent is indebted to several people and they are
evading payment to all their creditors and in order to defeat the legitimate rights and
claims of the petitioner, the respondents are attempting to alienate the only property
belonging to the 1st respondent. In such case, the ends of justice to attach the
property described in the schedules to this petition. Hence, this petition is filed for
attachment before judgment of the property of the 1 st Respondent set out in the
schedules in this petition
POINT FOR CONSIDERATION IS WHETHER THE PETITIONER IS
ENTITLED TO THE RELIEF AS PRAYED FOR:
4. It is the case of the petitioner that the respondents jointly and severally entered into
a Loan cum hypothecation agreement with the claimant on 25.01.2018 to purchase
Vehicle, bearing registration No. TN 86 A 9526, the total agreement value of
Rs.4042649/- being payable in 60 monthly installments. The first respondent
executed the said agreement as borrower and the second respondent as guarantor
and hence both the respondents are liable to an equal extent to pay to the claimants
the amount due under the agreement. The first respondent, who is not regular in re-
payments committed default and paid a sum of Rs.7639695/- towards monthly loan
installments(including sale amount of Vehicle).
5. Going through the pleadings as well as the details furnished in the claim statement
and also in the light of the available records before the tribunal such as the
Statement of Accounts, it is clearly seen that the first respondent had been irregular
in repayment of the loan amount. It is learnt that without trying to pay the balance
amount in order to defeat the legitimate rights and claims of the petitioner, the
respondents are attempting to alienate the property belonging to the 1 st
respondent.
6. In such case, the ends of justice, this tribunal hereby order of interim attachment of
the property mentioned in the schedule of property until further orders.
THE ORDER IS AS FOLLOWS
1. That the immovable property more fully set out in the Schedule hereunder, be
and is hereby attached and the same do remain under the attachment until further
orders of this Tribunal.
2. The Property sought to be attached situates within the jurisdiction of the Hon’ble
Principal District Judge, Erode Hence, I request the Hon’ble Principal District
Judge, Erode to implement the Order of attachment as per the provision of
section 17 of the Arbitration & Conciliation Act, 1996 read with Section 136
CPC, by appointing a senior bailiff of the Hon’ble Court and intimate the same
respect to jurisdictional Sub Register Concern.
Pronounced this order in the Arbitral Venue on day of December 2023
( R. RAMARAJ B.Sc., B.L.,)
Sole Arbitrator/Arbitral Tribunal
List of Documents filed by the Claimant:
1. Encumbrance Certificate – Online Copy
2. Sale deed copy ( Doc No.3044/2023)
SCHEDULE OF PROPERTY TO BE ATTACHED
Full / Correct description of the property
R.D. : GOBICHETTIPALAYAM
S. R. O. : SATHYAMANGALAM
Taluk : SATHYAMANGALAM
Village : GUTHIYALATHUR
R. S. Nos. : 1016/2
Total Extent : 1.00 ACRE
சொத்து விபரம்
கோபிசெட்டிபாளையம் பதிவு மாவட்டம், சத்தியமங்கலம் துணைப்பதிவு மாவட்டம்,
சத்தியமங்கலம் வட்டம், குத்தியாலத்தூர் கிராமத்தில் க.ச. 1016 நெ.பு.ஹெ.9.44.0 (பழைய
க.ச.940,111,1332) இதில் உட்பிரிவு ஏற்பட்டிருப்பதில் க.ச. 1016/2 நெ.பு.ஹெ.0.40.50 (பட்டா
எண். 3362) பு.ஏ. 1.00 முழுவதும் அதாவது,
சின்னதம்பி வகையறா நிலத்துக்கும்.
தென்வடல் வண்டிப்பாதைக்கும் சேர்ந்து (வடக்கு)
காளியப்பன் என்கிற காளியகவுண்டர் பூமிக்கும் (கிழக்கு)
காளியகவுண்டர் பூமிக்கும் (தெற்கு)
சின்னதம்பி வகையறா நிலத்துக்கும் (மேற்கு)
இதன் மத்தியில், பு.ஹெ.0.40.50 பு.ஏ. 1.00 ஒரு ஏக்கர் விஸ்தீரணமுள்ள பூமியும்,
தெற்கிலுள்ள பவளக்குட்டை செல்லும் கிழமேல் ரோடிலிருந்து மேற்படி க.ச. 1016 நெ
காலையில் எங்களது பங்கில் மேபுரம் ஓரத்தில் பதினாறு அடி அகலத்தில் வடக்கு நோக்கி
மேற்படி கிரைய பூமிவரை நாங்கள் விட்டுள்ள பு.ஏ.0.23 செண்ட் விஸ்தீரணத்தில் உள்ள
வண்டிப்பாதையை கிரையம் பெறும் தாங்கள் உபயோகித்து கொள்ளும் உரிமையும், மற்றும்
மற்றும் மாமூல் வண்டிப்பாதை வழிநடை உரிமை சகிதம்.
( இதில் பொதுவில் பாகம் செய்யாத இரண்டில் ஒரு பங்கு மட்டும் )
